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O2 to slash iPhone prices?

By Stuart Turton

Posted on 16 Mar 2009 at 09:14

Rumours abound that O2 is planning to drop the price of the iPhone 3G in the UK, as it shifts stock in preparation for the introduction of a new model.

The report comes courtesy of trade magazine, Mobile Today, and claims that beginning May the iPhone 3G will be free to those on £35 per month and £45 per month packages.

Currently, the 16GB version of the iPhone 3G is free to customers on the £75 per month contract, while the 8GB version is free on the £45 per-month or over plans.

According to the report, O2 is looking to make room for new models and cites T-Mobile, which has already trimmed prices elsewhere in Europe.

Apple has yet to give any hints about what this new model may be, though it has been speculated the company will introduce a shrunken version of the iPhone, dubbed the iPhone nano.

Apple and O2 refused to comment on the story.

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